OCTOBER 26, 1998

Floating Reynard

RUMORS in Britain suggest that Adrian Reynard and his partners are considering floating Reynard Motorsport Ltd. on the New╩York╩Stock╩Exchange. The company controls Reynard Racing Cars, Reynard Manufacturing, Reynard Composites and Reynard╩North╩America Inc. The group has enjoyed a boom in recent years thanks to the success of the company in CART racing in which Reynard chassis have been beaten only once in the last 27 races. There are even suggestions that Penske╩Racing is planning to buy Reynard chassis next year.

Adrian Reynard would be the major beneficiary of any flotation. He owns 62% of the company and controls another 18% through a trust company which he co-owns with his wife. Others who would benefit are the directors of Reynard Racing Cars, who between them own 15% of the company through their pension fund. These include car designer Malcolm Oastler, commercial director Rick Gorne and composite expert Paul Owens.

It is worth noting that Reynard Formula 1 Ltd., Reynard Special Vehicle Projects and Reynard Aviation are all independent of the main company and are not likely to be included in the sale.

While the flotation would raise considerable personal income for Reynard and his colleagues it is worth noting that a pile of money might be useful to them if shares in British American Racing were to become available. Reynard Formula 1 Ltd. currently owns a small percentage of BAR - believed to be 15% - but could become a majority shareholder if the bosses of British American Tobacco decided not to continue with its F1 adventures...